Investment Manager Finds Opportunities in Multifamily, Data Storage REITs

Michael Torres, CEO of Adelante Capital Management, joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.

Adelante is a global investment management firm focused on real estate securities, predominantly REITs.

The company’s strategy is to seek high current returns and long-term capital growth. Torres said the best way to achieve that strategy today is by focusing on “shelter” assets, either in the form of multifamily housing or data storage.

Torres also noted that with a new real estate sector in the Global Industry Classification Standard (GICS), REIT management teams may have to change the way they present their strategies to generalist investors.

Meanwhile, Torres commented on the gap in valuations between the public and private markets.

“We’re in the late cycle of the real estate industry, so capital is becoming much more discerning,” he said.

“That bifurcation is having implications in pricing, and that’s what you’re starting to see manifest itself,” Torres added.